Cybercrime rates are the highest they’ve ever been, and experts don’t expect that to change anytime soon. Companies are expected to not only try and reduce the frequency of cybercrime in their organization but prepare to respond to cybercrime events that are inevitable. The 2020 Internet Crime Report revealed that in the past 5 years there has been an average of 440,000 complaints and that the number grew by 330,000 in 2020. Those 5 years combined have resulted in a total loss of $13.3 Billion.
While cybercrime isn’t new, it is changing. 2022 predictions focus on the types of cybercrime we are expected to see, as well as the new complexities that make these threats even more severe with regard to the safety and protection of our online data. These trends will help you understand what to focus on in the year ahead, and where you can expect to allocate your cyber security initiatives for 2022.
The “smart device” era is constantly evolving, growing, and taking over traditional forms of technology. From smart tv to smartphones, and smarter computers-everything is connected to the internet and thus connected to personally identifiable information and data. The positive side of this is the obvious convenience of easily accessed intelligence, but the downside is the opportunity for hacking. The risk extends from smartphones and computers to TVs, cameras, online portals, and databases. Your devices are at risk, anyone you share information with is at risk, and as technology continues to be the predominant form of communication, so the risk grows.
The effects of cyber hacks extend far beyond some data leaks here and there. Cyberhacking has become known as a form of terrorism, and its effects can cause actual deaths in some cases. One of the more common ways this can happen is when important infrastructure is interrupted by hackers and information is lost at critical times. Hospitals, for example, rely on technology to display critical information about the health of their patient. In one recent cyber case, a baby is thought to have passed away due to the hospital’s computers being hacked and thus unable to display that the baby’s heartbeat had slowed down. These types of situations aren’t hackers physically killing victims, but the aftermath of their hacking can in fact lead to death. As hacking becomes more complex and able to reach more critical organizations, experts predict situations such as the ones described above may become more common.
Companies are fully aware at this point that they need to carry some form of cyber protection. Recent statistics show that one in three people experience an attack, and that’s not the worst of the statistics. These rates are expected to go up by over 100% in 2022 if the trends continue at the same pace they’re at now. The issue is that premiums have gone up so much it’s becoming a financial burden. On the other side, only carrying cyber endorsements or low-cost add-on’s is not enough to fully protect an organization from growing threats. By the end of 2022, the cyber insurance industry is expected to shift toward a more comprehensive and affordable model-but not without some requirements. In most cases, underwriters will require extensive security measures to be in place in order to secure good coverage. This week not only protects the organization but ensures the insurance company is taking on a reasonable risk.
You’ve probably heard of the Great Resignation by now. It refers to the millions of Americans quitting their jobs at a record rate every month for the past year. Industries are all suffering from unfilled job openings and a lack of interested, qualified individuals. The tech and cyber industry is experiencing these same losses. The issue with regard to cybersecurity is that organizations rely on their cyber and tech professionals to not only spot threats, but handle, mediate, and recover from these cyber threats as well. Whether these positions are within the company or through a third-party security organization, these roles are absolutely critical to the security of our professional landscape.
We’re facing a situation where qualified individuals are quitting, and potential professionals are not interested in training for the roles. The commerce department released the news that there were close to 500,000 unfilled cybersecurity roles at one point in 2022. In order to combat the issue, the cyber industry is planning to offer financial incentives. Additionally, there is potential for 2022 to see a rise in AI cyber security, where industries will rely on technology to spot and fix malware or hacking.
The world is not introducing drastic changes to the professional or technological landscape. Rather, we’re seeing a steady increase in the strength and frequency of the changes we witnessed over the past 3-5 years. That means there is less time and room to plan for adaptation, and more urgency to just adapt. For the year ahead, that means focusing on security initiatives, planning for backup dependencies in the event technology crashes, and building an accessible protection plan for everyday citizens and organizations alike through the creation of affordable insurance and training. Every industry is accustomed to growing and changing alongside industry shifts, but perhaps the cyber world has an even more responsibility to do so. This is reflected in the efforts put forward by the government, and powerful organizations.
As dedicated insurance professionals, ECBM is committed to staying up to date on the cyber landscape and adapting our services to the changing needs of our clients. As the cyber world complicates, we make sure you understand how that will affect you, and offer plans to cover you and your organization accordingly. Whether you have questions on your current plan, are interesting in purchasing a plan, or are looking for a thorough review of your options- ECBM is here to help. For more information, contact one of our agents today.